Background

The GSP scheme is a trade policy instrument of the European Union (EU). It grants tariff preferences to developing countries when importing goods into the EU.

The GSP system consists of a

– general arrangement

– special arrangement in favor of least developed countries [so-called Everything but Arms (EBA) initiative] and

– Special incentive arrangement for sustainable development and good governance [GSP+].

The list of GSP beneficiary countries is reviewed annually. GSP Regulation (EU) No. 978/2012 also contains provisions on the removal of tariff preferences for groups of products (so-called graduation) and safeguard measures in case of excessive imports into the EU. This is the case when the average value of these products imported into the EU from the GSP beneficiary country exceeds the thresholds listed in Annex VI of the said Regulation for three consecutive years. The thresholds are calculated as a percentage of the total value of imports of the same products into the Union from all GSP beneficiary countries.

The Economic Partnership Agreement (CEPA) between the EFTA States (Switzerland, Iceland, Liechtenstein and Norway) and Indonesia entered into force on 1 November. It is intended to further expand trade relations between the partners.

According to EFTA, the agreement will give EFTA countries access to export products such as fish and marine products, agricultural and food industry products, industrial and technical products, machinery and watches, as well as chemicals and pharmaceuticals. The CEPA is also intended to promote trade in services, e.g. for energy-related services, telecommunication services, the financial industry or through access for maintenance personnel. It also provides an improved framework for cross-border investment.

Sustainable development is a special focus. The agreement includes commitments by the contracting parties in the areas of environmental protection, fundamental rights and the sustainable management of forest resources and vegetable oil.

Changes in customs law

For Switzerland, the agreement brings about a decisive change in terms of customs clearance: Indonesia will no longer be considered a developing country once it enters into force. As a result, in future preferential imports into Switzerland will no longer require the Form A or the declaration of origin on the invoice (GSP agreement), but only the declaration of origin under this free trade agreement in order to benefit from preferential treatment (preferential tariff treatment).

According to EFTA, trade in goods between the EFTA States and Indonesia amounted to more than €1.1 billion in 2020. The EFTA States exported goods worth €628 million. For imports, this value amounted to 518 million euros.

More information on the significance of the agreement for Switzerland can be found on the website of the State Secretariat for Economic Affairs.